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What type of compensation plan will you recommend? What are some of the problems you need to be aware of?

Discussion Question
Chapter 9 (Pay for Performance: The Evidence) and
Chapter 10 (Pay for Performance Plans)

You own Falzer’s Tool Coating Company, a high-tech firm specializing in the coating of
cutting tools (e.g., drill bits, cutting blades) to provide longer life before resharpening is needed.
You are concerned that the competition continues to develop new coating methods and new
applications of coating in different industries. You want to create a work environment where
employees offer more new product ideas, and suggest new industries where these ideas might be
applied.
What type of compensation plan will you recommend?
What are some of the problems you need to be aware of?
Online Text: e-book vital source under Shannon’s bookshelf
Title- Compensation 13the edition Gerhart and Newman 2020

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